The Kenya Revenue Authority (KRA) wants award-winning athletes to submit taxes at a top rate of 30%. According to John Njiraini, KRA’s commissioner-general, this new development is part of the renewed focus on rich Kenyans to help raise the revenue needed to finance rising government obligations. “It is part of our focus on high net worth taxpayers and is being handled by the Eldoret office,” Mr Njiraini told Business Daily.
An article published on Business Daily reports that these new tax measures will apply to all sportsmen and women but the athletes stand out because of the sport’s high profile in Kenya. The article further reports that KRA’s fresh focus on sports income has elicited sharp reactions from athletes long used to filing returns at their own pleasure and to paying taxes voluntarily.
“KRA has already sent multi-million shilling tax demands to two athletes: World Marathon champion Abel Kirui and world women’s 5,000m silver medalist Sylvia Kibet, provoking Athletics Kenya (AK) boss Isaiah Kiplagat to complain of “harassment” of the sportspeople”, reports the piece.
According to the article, the taxman has sent Kirui a KES 12.8 million tax demand while Ms Kibet is required to pay KES 2 million. This means that if an athlete wins KES 100 million in a country where the income tax rate is 20%, they are required to pay the remaining 10% to KRA to be fully compliant with Kenya’s income tax rate of 30%.